NatWest Group has recently announced a significant strategic acquisition, purchasing Evelyn Partners for an enterprise value of approximately 2.7 billion pounds, equivalent to about $3.7 billion. This move is designed to substantially bolster NatWest's standing in the competitive wealth management sector, thereby improving its array of services and broadening its market presence. The integration is poised to establish a dominant force in the UK's Private Banking and Wealth Management landscape, offering enhanced savings and investment opportunities to NatWest's vast customer base of 20 million.
Evelyn Partners, prior to this acquisition, demonstrated robust financial health, overseeing 69 billion pounds in Assets Under Management and Administration (AUMA). The firm also exhibited consistent growth, achieving over 7% Compound Annual Growth Rate (CAGR) in AUMA and recording 179 million pounds in EBITDA during 2025. This performance implies a 2025 EV/EBITDA multiple of 9.7x, taking into account target run-rate cost synergies. This strategic integration is expected to allow NatWest to deliver more sophisticated and comprehensive financial solutions to its clientele.
The acquisition is currently awaiting the necessary regulatory approvals and is anticipated to conclude by the summer of 2026. This transaction is a key part of NatWest’s broader strategic vision to enhance its service portfolio and solidify its market position. The combination of Evelyn Partners with NatWest Group’s Private Banking and Wealth Management (PBWM) business, under the leadership of Emma Crystal, will result in a combined AUMA of 127 billion pounds and total customer assets and liabilities amounting to 188 billion pounds.
NatWest foresees considerable shareholder value creation from this merger, projecting estimated annual run-rate cost synergies of 100 million pounds, which represents approximately 10% of combined PBWM costs. The implementation costs associated with these synergies are estimated at about 150 million pounds. Furthermore, the transaction is expected to positively impact NatWest's growth and Return on Tangible Equity within its first year, offering returns that surpass those from a share buyback initiative. The deal will be financed using existing resources and is projected to decrease NatWest’s CET1 ratio by approximately 130 basis points.
In parallel with the acquisition, NatWest also declared a 750 million pounds share buyback program. The subsequent buyback is slated to follow the release of the first half of 2027 results. The ordinary dividend payout ratio is set to remain at roughly 50% of attributable profits. NatWest’s quarterly results are scheduled for release on February 13. Following these announcements, NatWest Group shares experienced a downturn, declining by 5.99% to $17.02 at the time of publication on Monday.
This strategic acquisition underscores NatWest's commitment to expanding its financial services footprint and enhancing its wealth management capabilities. By integrating Evelyn Partners, NatWest aims to not only reinforce its market leadership but also to deliver superior value to its customers and shareholders through a more robust and diversified service offering. The anticipated synergies and financial benefits are expected to drive long-term growth and stability for the banking group.